Background: Fernando Gaite owned mining claims containing iron ore. Isabelo Fonacier was a businessman interested in purchasing the iron ore. The Contract: On November 8, 1954, Gaite and Fonacier entered into a contract ("Revocation of Power of Attorney and Contract") where: Gaite revoked a Power of Attorney he had previously granted to someone else regarding the mining claims. Gaite sold Fonacier an estimated 24,000 tons of iron ore from the mining claims for a lump sum price. A surety company issued a bond on December 8, 1954, to guarantee Fonacier's payment to Gaite. This bond expired on December 8, 1955. The Dispute: A disagreement arose between Gaite and Fonacier regarding the amount of iron ore actually delivered: Gaite claimed that he fulfilled the contract and delivered close to the estimated amount. Fonacier alleged that only around 7,573 tons were delivered and sought damages of over P200,000.00. The Legal Proceedings: Gaite filed a case against Fonacier to co...

  Facts: LL and Company Development and Agro-Industrial Corporation (LL) leased a 1,112 square meter lot to Huang Chao Chun and Yang Tung Fa (Huang and Yang). The lease contract had a fixed term and included specific provisions for renewal and rental increases. Huang and Yang allegedly failed to pay rent for a significant period. The lease contract expired, but Huang and Yang refused to vacate the property. Issues: Did Huang and Yang violate the lease agreement by failing to pay rent? Were Huang and Yang entitled to stay on the property after the contract's expiration? What were the appropriate remedies for LL, the lessor? Ruling: The Supreme Court ruled partially in favor of both LL and Huang and Yang: In favor of LL: Huang and Yang were found to have violated the terms of the lease by not paying rent. They were ordered to vacate the property. In favor of Huang and Yang: The Court determined that the lease was automatically extended on a month-to-month basis after the fixed term, ...

  Facts Rufino Dulay, Sr. and his wife, Ignacia Vicente, donated a 10,000 square meter portion of their land to the Department of Education and Culture (DECS), now the Department of Education (DepEd). The deed of donation included a condition: the land was to be used for school purposes, specifically for the construction of a building for the Rizal National High School. The DECS/DepEd failed to construct the school building, and the land remained unused for many years. The heirs of Rufino Dulay, Sr. filed a case to revoke the donation due to this breach of condition. Issues Whether the donation was subject to a condition that the DECS/DepEd was required to fulfill. Whether the failure of the DECS/DepEd to use the land for its intended purpose constituted a breach of condition, justifying the revocation of the donation. Ruling The Supreme Court ruled in favor of the heirs of Rufino Dulay, Sr. The Court held that the donation was made with an explicit resolutory condition – the use o...

A resolutory period is a specific timeframe attached to an obligation or contract. The fulfillment of the obligation or termination of the contract happens upon the arrival of this period. It's important to understand that a resolutory period operates differently from a regular period or deadline. With a regular period, the obligation becomes due and must be fulfilled on a particular date. With a resolutory period, the contract comes to an end. Key Points (Based on the Civil Code of the Philippines): Article 1191  - Contracts with a resolutory period become effective at once but are terminated upon the arrival of the set period. Article 1192  - If the obligation of either party becomes impossible to fulfill (due to no fault of the parties), the obligation is extinguished. Article 1193  - In cases with a set period, the obligation only becomes demandable when that period arrives. However, there's the concept of a "day certain," a period that will undoubtedly happen, ev...

  What are Resolutory Conditions? A resolutory condition is a type of condition attached to a contract or obligation. When this condition is fulfilled, the contract or obligation is automatically extinguished (resolved). Key point:  Resolutory conditions undo an existing contract, as if it never happened in the first place. Resolutory Conditions in Philippine Law The primary source for understanding resolutory conditions in the Philippines is the New Civil Code (Republic Act 386): Article 1191:  Obligations for which a specific date (day certain) is fixed are only demandable when that day arrives. An obligation with a resolutory period takes effect immediately but will end upon the arrival of the specified date. Article 1192:  Even if there isn't a specific date, the courts can establish a period if it can be determined from context that a timeframe was intended. The duration of a period can also be established by the courts if it is dependent on the debtor's will. I...

T he concept of payment by cession in obligations and contracts, with a focus on Philippine law. What is Payment by Cession? Cession  (or Assignment): In a legal context, cession means transferring a right from one person (the cedent or assignor) to another (the cessionary or assignee). Payment by Cession : This occurs when a debtor, with the consent of the creditor, transfers ownership of their property to the creditor as a form of fulfillment for an outstanding obligation (debt). Key Points (under Philippine Law) Governing Law:  The primary laws governing cession in the Philippines are found in the Civil Code of the Philippines, specifically Articles 1255 to 1263. Consent:  Consent from all parties (debtor, creditor, and potentially third-parties) is generally required for a valid cession. Debtor's Release:  After the cession, the debtor's responsibility is limited to the net proceeds of the assigned property. They are released from further liability unless express...

T he term "constructive payment" is used in various legal contexts around the world, it doesn't have a specific, well-defined legal doctrine within Philippine contract and obligations law. Here's what you need to understand: Key Concepts Related to Payment in Philippine Law The Civil Code of the Philippines addresses obligations and contracts. Here are some relevant principles that might be indirectly related to what you're thinking of as "constructive payment": Modes of Payment (Article 1249):  Payment can be made in: Money Any agreed-upon substitute (e.g., checks, promissory notes) Delivery of a thing (dacion en pago) Performance of a service (application of payment) Imputation of Payment (Article 1252):  When a debtor owes several debts to a single creditor, rules exist to determine which debt is satisfied by a payment. Consignation (Article 1256):  If the creditor refuses payment without just cause, the debtor can make a consignation (depositing the ...

  The legal basis for the requisites of novation in the Philippines is primarily found in the Civil Code of the Philippines (Republic Act 386). Here's the specific provision: Article 1292 of the Civil Code of the Philippines:   "In order that an obligation may be extinguished by another which substitutes the same, it is imperative that it be so declared in unequivocal  terms, or that the old and the new obligations be on every point incompatible with each other." Explanation This article outlines the four essential elements required for a valid novation: A previous valid obligation:  The original contract needs to be legally binding. Agreement of all the parties to the new contract:  Explicit or implied intention to create a new contract is needed. Extinguishment of the old contract:  The old contract ceases to exist. Validity of the new one:  The new contract must meet all requirements for enforceability. Important Note: Remember that court decisions...

  1. A Previous Valid Obligation Novation requires a pre-existing, legally enforceable obligation to serve as the basis for the modification. If the original contractual obligation is void or unenforceable, novation cannot take place. 2. Agreement of All Parties to the New Contract For a valid novation, all parties must agree to the creation of the new contract. This includes: The original debtor The original creditor The new debtor or creditor (if involved in substitution or subrogation scenarios) Consent can be express or implied based on the circumstances. 3. Extinguishment of the Old Contract Novation results in the termination of the original obligation. It's a replacement, not a mere modification of the existing terms. The old contract must be completely extinguished. 4. Validity of the New One The new contract must fulfill all legal requirements to be enforceable. This includes factors like lawful object, proper form, and the capacity of the parties involved. Key Points: Exp...

  Civil Code of the Philippines (Republic Act 386) Novation is primarily defined and regulated under the Civil Code of the Philippines. The key provisions are: Article 1291:  Outlines the concept of novation and its methods: "Obligations may be modified by: (1) Changing their object or principal conditions; (2) Substituting the person of the debtor; (3) Subrogating a third person in the rights of the creditor." Article 1292:  Establishes the four essential requirements of novation. Article 1293:  Deals with novation by substituting a new debtor. Article 1294:  Addresses the effects of novation on accessory obligations. Article 1295:  Discusses when novation takes place. Article 1296:  Covers the presumption against novation. Relevant Jurisprudence In addition to the Civil Code provisions, there have been significant Supreme Court decisions that have further interpreted and shaped the application of novation in the Philippines. Some notable cases includ...

  What is Novation? Novation is a legal process where an existing contract or obligation is replaced with a new one. This can involve several scenarios: Change of object or principal condition:  Altering the thing due or core terms of an existing obligation. Substitution of debtor:  A new debtor takes over the original debtor's obligations. Subrogation of creditor:  A third party assumes the creditor's rights in the obligation. Types of Novation Express Novation:  The parties explicitly state their intent to extinguish the old obligation and create a new one. Implied Novation:  The old and new obligations are completely incompatible, implying a novation even without an express declaration. Essential Requisites of Novation (Philippine Civil Code) A previous valid obligation:  The original obligation must be legally binding. Agreement of all parties:  All involved parties (original debtor, original creditor, and the new party, if applicable) must ag...

What is Payment by Cession? Cession  (or Assignment): In a legal context, cession means transferring a right from one person (the cedent or assignor) to another (the cessionary or assignee). Payment by Cession : This occurs when a debtor, with the consent of the creditor, transfers ownership of their property to the creditor as a form of fulfillment for an outstanding obligation (debt). Key Points (under Philippine Law) Governing Law:  The primary laws governing cession in the Philippines are found in the Civil Code of the Philippines, specifically Articles 1255 to 1263. Consent:  Consent from all parties (debtor, creditor, and potentially third-parties) is generally required for a valid cession. Debtor's Release:  After the cession, the debtor's responsibility is limited to the net proceeds of the assigned property. They are released from further liability unless expressly agreed upon in the contract. Third-Party Rights:  A cession cannot adversely affect the r...

 A  case digest of Olbes vs. Deciembre, 457 SCRA 341. Case Title: Spouses Franklin and Lourdes Olbes vs. Atty. Victor V. Deciembre Citation: A.C. No. 5365, April 27, 2005 Facts The Olbes spouses engaged Atty. Deciembre to represent them in a civil case. As security for his legal fees, the spouses gave Atty. Deciembre signed blank checks. The civil case was resolved, and the Olbes spouses paid Atty. Deciembre's fees in full. Despite full payment, Atty. Deciembre filled out the blank checks with amounts far exceeding the agreed-upon fees and deposited them. Additionally, Atty. Deciembre initiated unfounded criminal cases (for estafa and violation of the bouncing checks law) against the Olbes spouses. Issues Whether Atty. Deciembre violated the Code of Professional Responsibility by filling out blank checks with unauthorized amounts. Whether Atty. Deciembre's act of filing unfounded criminal suits against his clients constituted misconduct. Key Points for Law Students Attorney-...

A case digest with key points for law students of the case In re: Avanceña, 20 SCRA 1012 : Case Title: In re: Attorney Jose Avanceña Citation: G.R. No. 407, August 15, 1967 (20 SCRA 1012) Facts: Attorney Jose Avanceña was convicted of falsification of a public document under Article 172 of the Revised Penal Code. The trial court found that Avanceña used his position as a lawyer to defraud his clients. Due to this conviction, the Supreme Court provisionally suspended Avanceña from the practice of law pending the final outcome of his criminal appeal. The Court of Appeals later affirmed Avanceña's conviction. Issue: Whether or not an attorney convicted of a crime involving moral turpitude, especially one in which he abused his position as a lawyer, should be disbarred. Holding: Yes. The Supreme Court disbarred Attorney Avanceña. Reasoning: Conviction as grounds for disbarment:  An attorney's conviction of a crime involving moral turpitude is a ground for disbarment under Section...

 A case digest of Leynes vs. Veloso, 82 SCRA 325, including the key points and its implications for Philippine jurisprudence: Case Title: Leynes vs. Veloso, 82 SCRA 325 Citation: A.M. No. 689-MJ. April 28, 1978 Facts: Pedro D. Veloso, a municipal judge in General Nakar, Quezon, was accused of immorality for openly living with a concubine and having children with her. There were two separate complaints: One from a man whose sons were acquitted by Judge Veloso in an assault case. The second is from a person whose complaint of immorality was initially withdrawn. Judge Veloso admitted the relationship but argued that his wife condoned the behavior and one complaint was withdrawn, rendering the case moot. Issues: Is a judge's grossly immoral conduct, even when one complaint is withdrawn, sufficient grounds for disciplinary action? Can a spouse's condonation erase the administrative liability of a judge who engages in acts considered immoral by societal standards? Supreme Court Ru...